Saving & Investing

We can get so caught up in day-to-day events that we don't think about the future.
This may not be a problem today or tomorrow, but in the long run – when you want to
buy a home or when it's time for retirement – savings and investments can be vital.

Saving. Everyone needs an emergency savings fund. Most personal finance experts recommend
an emergency fund of between 3 and 6 months of income. The idea is that you would
have enough money to cover all of your expenses for several months in the event of
a financial crisis. If you're just starting out, set a goal of $1,000. An emergency
fund will prevent you from having to use credit if you have a sudden financial need.
Make saving easier by using direct deposit.

Your first savings goal should be to build a strong emergency fund. Second, save
for retirement. Fully fund your employer provided retirement plan and/or an IRA.
Third, save for future goals such as a special vacation, a car, a college education,
or a home. Your goals and dreams are as individual as you are but most of them come
with a price tag. Think about your future and create a financial plan to make your
dreams come true.

Investing. Investing is one of the best gifts you can give yourself. It's the best way to
make your money grow. Gain the financial resources to live your dream whether it's
home ownership, a college education, or travel during retirement. Two important investing
terms are risk and return. "Risk" is the chance that that the money you invest will
be lost. "Return" is the potential that you will earn money on the amount you invest.
Typically, the higher the risk, the higher the potential return. Always carefully
consider any financial investment opportunity. Frauds and scams are prevalent. Contact
the Arkansas Securities Department for safe investing tips for consumers or to report
potential fraud.